QUESTION 3 Below are the financial statements for ABCD Sdn Bhd as at 31 December 2020. The company is applying for a loan from EEE Bank. In order to evaluate the company as a potential debtor, the bank would like to compare the ABCD Sdn Bhd performance with the industry. STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 Cash 20,000 Account payable 40,000 Marketable securities 55,000 Accrued expenses 20,000 Account receivables 50,000 Tax accrual 37,000 Prepaid expenses 22,000 Long term debt 80,000 Inventory 65,000 Common Stock 45,000 Net land and building 80,000 Retained earnings 70,000 292,000 292,000 INCOME STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Sales 160,000 Cost of good sold 55,000 Gross Profit 105,000 Selling Expenses 30,000 Earning Before Interest and Tax 75,000 Interest Expense 8,200 Earning Before Tax 66,800 Tax Expenses 25,520 Profit After Tax 41,280 INDUSTRY AVERAGE RATIO Current ratio 1.65 x Average collection period 160 Days Quick ratio 1.32 x Inventory turnover 1.30 x Debt ratio 40% Return on assets 9.56% Time interest earned 7.9 x Net profit margin 22% Based on the given financial statements: a) Compute the indicates ratios as listed in industry average ratio for ABCD Sdn Bhd. b) Analyse the overall performance of the company according to liquidity, activity, profitability and leverage ratios. (30 Marks) QUESTION 4 a) Given below is uneven stream cash flow involving one annuity with the rate 5